US: Models suggest more than 70% probability of recession - BBVA
The Research Department at BBVA affirms that its model suggests there is more than 70% probability of a recession within the next two years and they see the “dovish” response from the Federal Reserve having the potential to negate downside risks in short-term.
Key Quotes:
“Shadow banking, business debt and risk appetite represent major red flags.”
“Dovish Fed response has potential to negate downside risks in short-term.”
“Trade tensions weigh on business expectations and market sentiment.”
“Economic fundamentals for households and financial institutions remain solid”
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
